Table 83 – EPRA performance measures




31 March 2011
31 March 2010

Definition for EPRA measure Notes Land
Securities’ Measure
EPRA
Measure

Land
Securities’ Measure
EPRA
Measure
Adjusted earnings Recurring earnings from core operational activity 12 £278.0m £255.4m1 £257.8m £262.7m1
Adjusted earnings per share Adjusted diluted earnings per weighted number of ordinary shares 12 36.31p 33.36p1 34.08p 34.73p1
Adjusted net assets Net asset value adjusted to exclude fair value movements on interest rate swaps 13 £6,366.7m £6,834.2m2 £5,241.2m £5,727.2m2
Adjusted net assets per share Adjusted diluted net assets per share 13 826p 887p2
691p 755p2
Triple net assets Adjusted net assets amended to include the fair value of financial instruments
and debt
13 £6,252.8m £6,252.8m
£5,213.4m £5,213.4m
Triple net assets per share Diluted triple net assets per share 13 812p 812p
687p 687p
Net Initial Yield (NIY) Annualised rental income less non-recoverable costs as a % of market value plus
assumed purchasers' costs3

5.3% 5.3%
5.7% 5.7%
Topped-up NIY NIY adjusted for rent free periods3
5.8% 5.8%
6.3% 6.3%
Voids/Vacancy Rate ERV of vacant space as a % of ERV of combined portfolio4
5.2% 5.2%
6.0% 6.0%
  1. EPRA adjusted earnings and EPRA adjusted earnings per share include the effect of debt restructuring charges (net of taxation) of £22.0m (2010: £3.6m), the effect of bond exchange de-recognition charges of £18.5m (2010: £13.8m), the effect of non-recurring revenue items of £2.3m (2010: £nil) and non-revenue tax adjustments of £16.8m (2010 : £23.1m) but exclude the profit on the sale of trading properties of £1.2m (2010: £0.8m).
  2. EPRA adjusted net assets and adjusted diluted net assets per share include the effect of bond exchange de-recognition of £467.5m (2010: £486.0m).
  3. Our NIY and Topped-up NIY are calculated by our external valuers and are consistent with EPRA NIY and Topped-up NIY. Further analysis on NIY is given in the Combined Portfolio Analysis.
  4. Based on our combined portfolio excluding the development programme. Further analysis is given in the Combined Portfolio Analysis.

Table 84 – Reconciliation of net book value of the investment properties to the market value


31 March 2011
31 March 2010

Group
(excl. joint
ventures)
£m
Joint
venture
£m
Total
£m

Group
(excl. joint
ventures)
£m
Joint
venture
£m
Total
£m
Net book value 8,889.0 1,328.0 10,217.0 8,044.3 1,227.1 9,271.4
Plus: amount included in prepayments in respect of lease incentives 194.2 36.1 230.3 171.9 24.5 196.4
Less: head leases capitalised (28.4) (4.6) (33.0) (52.6) (4.9) (57.5)
Plus: properties treated as finance leases 136.1 8.5 144.6 121.8 8.3 130.1
Market value 9,190.9 1,368.0 10,558.9 8,285.4 1,255.0 9,540.4

Table 85 – Top 10 property holdings

Total value £3.9bn
(37% of combined portfolio)







Name Principal occupiers Ownership
interest
%

Floor area
m2
Annualised
net rent1
£m
Let by
income
%
Weighted
average
unexpired
lease terms (yrs)
Cardinal Place, SW1 Microsoft 100 Retail 7,700 37.5 97 7.0

Wellington Management
Office 52,300


New Street Square, EC4 Deloitte 100 Retail 1,800 31.8 100 12.3

Taylor Wessing
Office 31,700


One New Change, EC4 K&L Gates 100 Retail 20,600 2.4 81 12.8

CME
Office 31,700



H&M






M&S






Topshop





Queen Anne’s Gate, SW1 Government 100 Office 32,800 27.3 100 15.5
White Rose Centre, Leeds Sainsbury’s 100 Retail 65,000 21.0 98 8.1

Debenhams






M&S






Primark





Gunwharf Quays, Portsmouth Vue Cinema 100 Retail 31,300 19.2 99 7.3

M&S
Office 2,800



Nike
Other 24,300



Gap





Cabot Circus, Bristol House of Fraser 50 Retail 114,200 19.4 97 10.4

Harvery Nichols
Other 8,800



H&M





Bankside 2&3, SE1 Royal Bank of Scotland 100 Retail 3,500 16.1 100 16.2



Office 35,200


Piccadilly Circus, W1 Boots 100 Retail 5,200 12.2 95 3.7

Barclays
Office 1,500





Other 440


St David’s Dewi Sant, Cardiff John Lewis 50 Retail 130,100 14.8 84 9.0

New Look






H&M





  1. Group share.

Table 86 – Average rents at 31 March 2011


Average rent
£/m2
Average ERV
£/m2
Retail
Shopping centres and shops n/a n/a
Retail warehouses and food stores 212 206
Offices
London office portfolio 396 384

Average rent and estimated rental value have not been provided where it is considered that the figures would be potentially misleading (i.e. where there is a combination of analysis on rents on an overall and Zone A basis in the retail sector or where there is a combination of uses, or small sample sizes). This is not a like-for-like analysis with the previous year. Excludes properties in the development programme and voids.

Table 87 – Like-for-like reversionary potential

Reversionary potential 31 March
2011
% of rent
31 March
2010
% of rent
Gross reversions 8.2 6.5
Over-rented (7.2) (9.7)
Net reversionary potential 1.0 (3.2)

The reversion is calculated with reference to the gross secure rent roll after the expiry of rent free periods on those properties which fall under the like-for-like definition as set out in the notes to the combined portfolio analysis. Reversionary potential excludes additional income from the letting of voids. Of the over-rented income, £16.6m is subject to a lease expiry or break clause in the next five years.

Table 88 – One year performance relative to IPD

Ungeared total returns – year to 31 March 2011


Land
Securities
%
IPD
%
Retail – Shopping centres 14.7 12.9
Retail – Retail warehouses 16.91 11.3
Central London retail 32.3 20.0
Central London offices 16.02 18.1
Total portfolio 16.8 11.3
  • IPD Quarterly Universe
  • 1. Including supermarkets.
  • 2. Including inner London offices.